Verizon Wireless’s new chief executive, Daniel Mead, is pulling right into the fast lane.
Two months after he took the job Oct. 1, Verizon plunked down its biggest bet in years by launching an expensive new fourth-generation wireless broadband network. It promises super-fast Web surfing that will make it easier, for example, to watch video on smartphones and tablets.
Mr. Mead will have to cut through the noise from competitors claiming similar capabilities and persuade customers Verizon’s is better. He will also have to keep Verizon’s lead as the industry shifts to relying more on data services.
Then there are the reports that the country’s largest wireless carrier, which has built a deep and lucrative relationship with Google Inc., might soon get to carry Apple Inc.’s iPhone. (A spokesman declined to comment.)
The job of sorting all that out falls to a low-profile leader, typical for a company that despite its splashy marketing campaigns tends to promote executives quietly from within. Mr. Mead has served as an executive at the company since it was created as a joint venture of Verizon Communications Inc. and Vodafone Group PLC a decade ago—usually in jobs where he is deep in the details of making it all work.
He likes speed, as evidenced by his passion for watching motor sports as well as the IndyCar series trophy given to him by racer Will Power and displayed prominently in his office. (Verizon Wireless sponsors the driver and his team.)
Mr. Mead recently spoke with The Wall Street Journal.
Excerpts:
WSJ: How is your 4G technology, called Long-Term Evolution, different from existing networks?
Mr. Mead: LTE is an enormous investment for us. We’re covering over a third of the country right now. As we get out through 2012, we’ll have about 85%. The difference is speed, quality and improvement in the latency.
WSJ: How are you going to distinguish your 4G from rival technologies?
Mr. Mead: The quality of the network is paramount for us. It was clear to us that LTE was a superior technology. I spent some time running wireline [landline] and FiOS [Verizon’s high-speed home Internet and television business], and wireless is going to offer a tremendous breadth of capabilities for substitution.
WSJ: So are you saying LTE could serve as a replacement for wireline services?
Mr. Mead: It is a very practical and encouraging substitution for DSL, particularly when you look at rural markets.
WSJ: What’s your vision of the future for mobile devices?
Mr. Mead: I think the world for the next few years is going to be more around tablets and smartphones. I think we’ll see netbooks come under a little bit of pressure and maybe PCs a little, but still those categories will be in the lineup. I know that I have pretty much stopped carrying a PC around. I have a tablet and smartphone.
WSJ: Which tablet do you carry?
Mr. Mead: All of them. I had access to the iPad a little earlier than I had access to the [Samsung] Galaxy [Tab], but we’re using both of them. I wrestled them away from my wife, because she uses them as well.
WSJ: Where do you see the company five years from now?
Mr. Mead: I feel like we’re hitting another growth spurt. I think we should be thinking 300% to 400%-plus penetration [with three to four devices per person].
WSJ: Where will the revenue come from?
Mr. Mead: I do not see voice revenue evaporating. We may deliver it in different ways—think about [Internet-based voice service] and capabilities that are enabled by the LTE network—but people are going to need to talk to each other. We’re also very pleased with our small and medium business growth and our enterprise growth.
WSJ: What are your thoughts on data pricing?
Mr. Mead: We’ve tried some things recently. We’re very encouraged [by the holiday offer of a $15 data plan]. We have not moved in terms of unlimited for consumers in the $30 price point. Some day we may consider metered pricing. We haven’t made any final decisions there yet.
WSJ: Would you consider a “family plan” for data?
Mr. Mead: We’ve shared voice minutes and text messages for the family. I think it’s fully in the realm of possibility in the not-to-distant future to be able to start thinking through the options. Describe it as account-level pricing. How do we get to 300%-400% penetration? That’s a vehicle to get there.
